Dive Brief:
- Entering its first new European market since 2019, Lululemon on Tuesday announced its entry into Spain later this month.
- A Spanish version of the company’s e-commerce site will go online in the country in late July, according to a company press release.
- Two stores will follow in September, one on Calle Serrano in Madrid and the other on Paseo de Gracia in Barcelona.
Dive Insight:
Lululemon isn’t wasting any time in pursuit of its new growth strategy. In April, the retailer laid out a path to reaching $12.5 billion in annual revenue, which includes a goal of quadrupling its international business. Spain was one of the markets the retailer earmarked for expansion at the time, noting it would enter the country within 12 months.
Now, just three months later, Lululemon is making good on that promise. The retailer already operates close to 40 stores across Europe, in France, Germany, Ireland, the Netherlands, Norway, Sweden, Switzerland and the U.K. Lululemon ships to additional countries in Europe from its European Union website. Opening stores and a dedicated e-commerce site in Spain gives it yet another foothold on the continent.
“As a brand which supports wellbeing, Lululemon has a strong synergy with the active, balanced lifestyle enjoyed in Spain,” André Maestrini, executive vice president of international at Lululemon, said in a statement, adding the company is excited to engage with customers in the country. “The strength of our model across product innovation, guest experience, community and culture provides a unique advantage as we introduce Lululemon to our newest market.”
The company’s plans for Europe are much larger than just Spain, though. Lululemon in April also said it would enter Italy within the next 12 months, and is building out its presence in more mature markets, including Germany and the U.K. Top cities and shopping districts seem to be Lululemon’s focus, with the retailer planning a store on the Champs-Élysées in France and targeting two of Spain’s most well-known cities for its first stores in the country.
As it pursues larger international revenues, Lululemon also has Asia in its sights. Maestrini in April described China as the retailer’s “biggest opportunity” and said the retailer plans to expand from 70 current stores to more than 220 by 2026, more than tripling that footprint. South Korea will also be a focus point going forward and the company is targeting Tokyo in Japan, as well as a near-term launch in Thailand.
Lululemon in March surpassed $6 billion in revenue for the first time, on the back of its Power of Three growth strategy. The company’s new plan, dubbed Power of Three x2, seeks to achieve the same goals again, including doubling its men’s business, doubling its digital revenue and quadrupling its international revenue by 2026.
